Hi,
I have 20-year money posterior policy and paid 4 year premium. If I surrender the policy what amount will I grasp. How to calculate the surrender meaning?
Answers: It is not a good impression to surrender any insurance policy. Any how you had taken money support policy and you will get the money surrounded by intervals as survival benefit. IF you wish to produce more money then invest the survival benefit as you preference in mutual funds or shares to grow. you can even reimburse future premiums from your investment of your survival benefits itself. Hence please drop the perception of surrendering which will defeat the purpose of insurance.
moral luck
pnkmurthy(a)yahoo.com
http://www.geocities.com/pnkmurthy/lic.h...
Re: LIC Moneyback vs Mutual Fund Investments
Some others (incl. Certified Financial Planners) have raise a comment on the above. You can judge for yourself.
1.Compare a residence plan insurance for the same amount as your Moneyback policy. It will be a fraction of the premium, possibly as much as 1/8th to 1/10th of the regular. You can calculate the Term plan premium here at LIC Premium Calculator (Select Anmol Jeevan, or as suitable)
http://www.licindia.com/premium_calculat...
2. Read why the gurus advocate Insurance & Investment should never be mixed. That is take a Term plan for the Insurance required. And invest the stability in 5Star-rated, not detrimental, reputed MFs . you can read about Top MFs at http://www.valueresearchonline.com/topra...
Investments? Insurance? Or both?
http://www.personalfn.com/detail.asp?dat...
Insurance vs Mutual Funds
http://www.valueresearchonline.com/story...
======================================...
Congratulations! For making a tough but right long-term finding. It is evident that surrendering a LIC Policy after have paid the premiums for the first 4 years may be considered by plentiful an unwise odds, as you stand to lose some money. But then, continuing next to high premiums just at the behest of your agent is even more unwise and over the long-term this could hurt your finances plentifully more.
There is a surrender value applicable, if you hold paid premiums regularly for atleast 3 years. So you will not lose adjectives your money or premiums paid. There are interesting option offered by LIC too. Read on more...the following excerpt from an article at personalfn.com
The trouble begins when you desire to discontinue the policy like heaps ULIP & Insurance investors have done contained by the recent past, after realising that the policy doesn’t rather fit into their scheme of things.
In such a scenario, the policy is considered to own lapsed and all the premiums remunerated are forfeited. More importantly, the insurer doesn’t entertain any claims once the policy lapse. However, it should be understood that the policy is not necessarily forfeited i.e. the policy’s plus doesn’t become nil. The Insurance Act does not allow for forfeiture as every policy acquires a reserve base on the premiums already paid.
The Insurance Act provides for a return to the policy holder of an amount explicitly representative of the reserve and this is referred to as the ‘Surrender Value’ or the ‘Cash Value’. The Insurance Act stipulates that every insurance policy shall have a guaranteed Surrender Value, if at lowest possible 3 years’ premiums have be paid. This reserve arises due to the following:
1. Premiums contained by the early years of the policy individual more than what is justified.
2. Savings part in the premium.
Apart from the risk of surrendering your policy, insurers like LIC also provide other option like making a policy ‘paid-up’, whereby the policy remains contained by force with a reduced sum assured, depending upon the number of premiums compensated. Another option is to hang on to the policy in force by deduct future premiums, from the Surrender Value. A third leeway is to provide term insurance subject to the condition that the Surrender Value is more than the sum assured.
Surrender Value is usually calculated as a percentage of the portfolio returns. Portfolio returns are calculated assuming a nominal something resembling 15% annual growth of the invested amounts (Premiums minus expenses, which as you now know are rather high surrounded by the initial years)
Read the complete article at
http://www.personalfn.com/detail.asp?dat...
LIC money back policy and specially of 20 year duration are devout and if you plan to invest in stocks or mutual funds instead of LIC, it does not make sense.
Contact me if you want, I can guide you why not to cancel this apart from the article you read.
Certified Financial Planner
gopal_gora(a)yahoo.com
It should state it surrounded by your policy. A lot of fine print to read, but different policies vary.
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I have 20-year money posterior policy and paid 4 year premium. If I surrender the policy what amount will I grasp. How to calculate the surrender meaning?
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Answers: It is not a good impression to surrender any insurance policy. Any how you had taken money support policy and you will get the money surrounded by intervals as survival benefit. IF you wish to produce more money then invest the survival benefit as you preference in mutual funds or shares to grow. you can even reimburse future premiums from your investment of your survival benefits itself. Hence please drop the perception of surrendering which will defeat the purpose of insurance.
moral luck
pnkmurthy(a)yahoo.com
http://www.geocities.com/pnkmurthy/lic.h...
Re: LIC Moneyback vs Mutual Fund Investments
Some others (incl. Certified Financial Planners) have raise a comment on the above. You can judge for yourself.
1.Compare a residence plan insurance for the same amount as your Moneyback policy. It will be a fraction of the premium, possibly as much as 1/8th to 1/10th of the regular. You can calculate the Term plan premium here at LIC Premium Calculator (Select Anmol Jeevan, or as suitable)
http://www.licindia.com/premium_calculat...
2. Read why the gurus advocate Insurance & Investment should never be mixed. That is take a Term plan for the Insurance required. And invest the stability in 5Star-rated, not detrimental, reputed MFs . you can read about Top MFs at http://www.valueresearchonline.com/topra...
Investments? Insurance? Or both?
http://www.personalfn.com/detail.asp?dat...
Insurance vs Mutual Funds
http://www.valueresearchonline.com/story...
======================================...
Congratulations! For making a tough but right long-term finding. It is evident that surrendering a LIC Policy after have paid the premiums for the first 4 years may be considered by plentiful an unwise odds, as you stand to lose some money. But then, continuing next to high premiums just at the behest of your agent is even more unwise and over the long-term this could hurt your finances plentifully more.
There is a surrender value applicable, if you hold paid premiums regularly for atleast 3 years. So you will not lose adjectives your money or premiums paid. There are interesting option offered by LIC too. Read on more...the following excerpt from an article at personalfn.com
The trouble begins when you desire to discontinue the policy like heaps ULIP & Insurance investors have done contained by the recent past, after realising that the policy doesn’t rather fit into their scheme of things.
In such a scenario, the policy is considered to own lapsed and all the premiums remunerated are forfeited. More importantly, the insurer doesn’t entertain any claims once the policy lapse. However, it should be understood that the policy is not necessarily forfeited i.e. the policy’s plus doesn’t become nil. The Insurance Act does not allow for forfeiture as every policy acquires a reserve base on the premiums already paid.
The Insurance Act provides for a return to the policy holder of an amount explicitly representative of the reserve and this is referred to as the ‘Surrender Value’ or the ‘Cash Value’. The Insurance Act stipulates that every insurance policy shall have a guaranteed Surrender Value, if at lowest possible 3 years’ premiums have be paid. This reserve arises due to the following:
1. Premiums contained by the early years of the policy individual more than what is justified.
2. Savings part in the premium.
Apart from the risk of surrendering your policy, insurers like LIC also provide other option like making a policy ‘paid-up’, whereby the policy remains contained by force with a reduced sum assured, depending upon the number of premiums compensated. Another option is to hang on to the policy in force by deduct future premiums, from the Surrender Value. A third leeway is to provide term insurance subject to the condition that the Surrender Value is more than the sum assured.
Surrender Value is usually calculated as a percentage of the portfolio returns. Portfolio returns are calculated assuming a nominal something resembling 15% annual growth of the invested amounts (Premiums minus expenses, which as you now know are rather high surrounded by the initial years)
Read the complete article at
http://www.personalfn.com/detail.asp?dat...
LIC money back policy and specially of 20 year duration are devout and if you plan to invest in stocks or mutual funds instead of LIC, it does not make sense.
Contact me if you want, I can guide you why not to cancel this apart from the article you read.
Certified Financial Planner
gopal_gora(a)yahoo.com
Should a entity purchase catastrophic form insurance? If so, what is the best age? Company?
It should state it surrounded by your policy. A lot of fine print to read, but different policies vary.
Resolved Questions: